Kalpataru Power moves court in Paris to enforce Rwanda Energy arbitration award – EQ Mag Pro
In order to develop and commission a 220 KV power transmission network linking the Democratic Republic of the Congo and Rwanda in Central Africa, KPTL, a power transmission, and distribution business signed a contract with REG in November 2013.
According to news reports, Kalpataru Power Transmission (KPTL) has applied to the Judicial Court of Paris to have a $32 million arbitration award against Rwanda Energy Group (REG) in a case involving a contract dispute enforced.
In order to develop and commission a 220 KV power transmission network linking the Democratic Republic of the Congo and Rwanda in Central Africa, KPTL, a power transmission, and distribution business signed a contract with REG in November 2013. When REG declined to compensate KPTL for a price modification, a conflict erupted.
KPTL received an award from the arbitral tribunal last year, and REG was required to pay over $32 million to the Indian company by October 18. REG, though, steadfastly refused to pay.
The New York Convention, commonly known as the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, has been ratified by Rwanda and India.
The business can approach the New York court for a similar remedy.
Originally, KPTL and REG had an agreement in place for the network’s design, engineering, supply, construction, installation, and commissioning. Beginning in October 2014, construction continued until May 2017, when an operational certificate was granted.
